Pulmatrix has decided to close a study on a potential treatment for a fungal lung infection in order to prioritize cost savings and strategic alternatives. They will receive royalties on sales of another product in exchange.
Pulmatrix, a biopharmaceutical company, has made the decision to close a study focused on a potential treatment for a fungal lung infection in order to prioritize limiting cash burn and pursuing strategic alternatives. Under an amendment to their agreement, Cipla, Pulmatrix's development partner, will now take responsibility for the development of PUR1900, a treatment for Allergic Bronchopulmonary Aspergillosis.
As part of this decision, both Cipla and Pulmatrix have agreed to halt enrollment in the Phase 2b study of PUR1900 and officially close the study. In exchange, Pulmatrix will receive 2% royalties on sales of Pulmazole within the Cipla territory, which is defined as the exclusive area in which Cipla can develop and commercialize PUR1900.
Pulmatrix's Chief Executive, Ted Raad, expects that stopping the study and implementing other cost-saving initiatives will help extend the company's cash runway until the first quarter of 2026. This move reflects the company's focus on maximizing shareholder value, and Pulmatrix plans to explore strategic alternatives as it winds down the study.
At the end of 2023, Pulmatrix had approximately $19 million in cash on hand.
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